AZE.US
Local food producers in Azerbaijan are facing costly barriers when trying to place their products in supermarkets and large retail chains, lawmakers and industry representatives say.
Razi Nurullayev, chairman of the National Front Party and a member of parliament, said supermarket chains require producers to pay entry, listing, marketing and other fees before their goods can reach store shelves.
According to the lawmaker, the charges can start at 200 manats ($118) for each supermarket branch and rise to 500 manats ($294), 1,000 manats ($588) or even more.
The main problem, Nurullayev said, is that producers may be required to pay separately for every branch of the same retail chain.
As a result, small and medium-sized businesses face a significant financial burden before selling a single product.
At the same time, local producers must compete with imported goods that may have lower production costs.
Nurullayev said the practice creates unequal competition and can prevent even high-quality Azerbaijani products from reaching consumers.
Supermarket shelves are increasingly filled with imported goods, he said, while local companies struggle to overcome financial barriers to entering the market.
Suppliers Wait Up To A Month For Payment
Murvat Hasanli, chairman of the Public Council under Azerbaijan’s Ministry of Agriculture, said he agreed with Nurullayev’s concerns.
Hasanli said the problem is not limited to listing and advertising charges. Some supermarkets also delay payments to suppliers.
Instead of paying producers within seven days, some retail chains take as long as one month to settle their bills, he told Cebheinfo.az.
The delays can force businesses to seek new bank loans to finance continued production.
Interest expenses are then added to the final cost of meat, eggs, dairy products and other goods, ultimately pushing prices higher for consumers.
Hasanli also claimed that major retailers work with only a small share of the country’s producers.
Azerbaijan has around 10 companies producing eggs, he said, but supermarkets do not offer equal access to products from all of them.
A similar situation exists in the meat industry. Of approximately 30 meat producers operating in the country, only a few supply major supermarket chains, according to Hasanli.
Retailers may also ask suppliers to pay for advertising or lower their prices to support promotional campaigns, effectively shifting the cost of supermarket discounts onto producers.
Calls For A Trade Law
Hasanli linked the problem to the absence of a separate law regulating trade in Azerbaijan.
He said such legislation should establish clear rules for payment deadlines, product placement, advertising campaigns and the responsibilities of large retail chains.
Supermarkets that fail to pay suppliers within the required period should face penalties, he said.
Hasanli also called for broader and more equal access to retail shelves for producers of potatoes, onions, beef, lamb, milk, cheese, yogurt, poultry and other food products.
Supporters of the proposal argue that a trade law could reduce financial pressure on local businesses, increase the range of Azerbaijani products available to consumers and limit practices that require suppliers to pay for shelf access and supermarket promotions.
AZE.US